The government says it has not received official communication from the Tanzanian government over plans to pull out of a joint trade agreement with the European Union. This even as it emerged that the Tanzanian parliament had shot down plans to approve the economic partnership agreement (EPA) between the East African Community (EAC) and the EU. It has also emerged that a case has been filed at the East Africa Court of Justice by a Tanzanian national seeking to prevent Tanzania and Uganda from signing the agreement. Trade and Industrialization Cabinet Secretary Adan Mohamed said on Wednesday that while the odds are stacked against Kenya, the final decision will be made during a heads of state summit to be held in January. “As East African ministers for trade we continue to dialogue and discuss this issue of the EPA with the European Union. The latest official position is the meeting that was held in Dar es Salaam where the heads of summit meeting agreed to highlight issues that each member states have in relation to that agreement,” Mr Mohamed said. Kenya and Rwanda are the only countries in the EAC that have signed and ratified the trade deal. While Uganda has previously expressed its willingness to sign, government officials are said to be waiting for a more unified stand before putting pen to paper. Tanzania has been vocal on its objection to the EPA deal, further frustrating Kenya’s efforts of gaining special access for its goods to the lucrative European...

Signs of protectionism in East Africa since the commencement of the bloc's Common Market regime have frustrated free movement of people and services. Integration efforts have been hampered by work permits required by some countries and delays in ratification of mutual recognition agreements for various professionals. Protectionist tendencies exhibited by some member states are mainly driven by the desire to shield certain sectors from foreign rivals. Whereas tariffs charged against foreign firms and professionals entering certain markets offer attractive revenue collection streams for countries, the overall share of tariff revenues in the East African Community has dropped to around 1.5 per cent of GDP since the Common Market was launched in July 2010, according to Mario Mansur, a tax expert based at the International Monetary Fund. "The application of such fees is driven by a traditional desire to collect more tax revenues needed to fund national programmes. But protectionism also plays a big role in countries seeking to protect local enterprises from aggressive foreign competitors," said Adam Mugume, executive director for research at the Bank of Uganda. Hurdles Whereas Tanzania recently announced reductions in work permit fees and professional service fees levied on foreign workers and businesses operating in the country, continued enforcement of these fees still poses hurdles to free movement of labour and services, contrary to provisions of the Common Market Treaty. Work permit fees have been slashed from $2,000 per year to $500 per year for every individual while professional service fees have been reduced from $3,000...

PARTNERSHIP: Representatives from the two countries’ foreign affairs ministry and TMA top officials were present. The  building of a One Stop Border (OSBP) is expected to increase efficiency by reducing time and transport costs incurred by businesses, farmers and transporters while crossing from one Partner State to the other. South Sudan joined the Community earlier this year. KAMPALA, UGANDA--South Sudan and Uganda have signed a Memorandum of Understanding (MOU) to work together and in partnership towards construction of a One Stop Border Post (OSBP) in Elegu/Nimule towns along the Uganda/South Sudan border. “We are glad the partnership between the two countries has been established. This will provide a framework and mechanism for bilateral cooperation,” Moses Sabiiti, Uganda Country Director TradeMark Africa (TMA) said at the signing last week. For OSBP operations, persons, vehicles and goods make a single stop to exit one country and enter another. Generally, its implementation includes simplification of documents and procedures and greater use of ICT. Many of the documents will be received and reviewed electronically before the vehicle arrives. If inspection is needed, it will be done jointly thereby avoiding unloading and reloading cargo twice with the loss of time and potential damage to goods. The first OSBP was officially opened in Holili/Taveta towns on the Kenya/Tanzania border in February 2016. Since then others have become operational along the common borders. TMA is the Uganda Revenue Authority’s (URA) strategic partner, which meant they were involved in the brokering and crafting the MOU. The MOU establishes...

MEMBERS of Parliament in Tanzania have dealt a crushing blow on hopes for the East African Community to sign the Economic Partnership Agreement (EPA) with the European Union as a bloc after rejecting it as a raw deal. The lawmakers meeting in Dodoma last week urged the government not to sign the Economic Partnership Agreement (EPA) between the European Union (EU) and the East African Community (EAC) member states saying they want a better deal that will protect the country’s infant industries.The agreement was tabled before the house on Monday last week by the Minister for Industry, Trade and Investment, Charles Mwijage for discussion. They argued that the country would not be able to protect domestic industries against more sosphicated European Union competitors. The MPs now want the government to negotiate a new deal which is more favourable to the country or renegotiate the agreement on terms which would protect country’s burgeoning industries. Tanzania is promoting an industrial economy as it is focused to transform from an agricultural economy to a semi-industrial economy by 2025. Negotiations between the EU and the East African countries over the trade deal have been going on since 2007 and an agreement was finally reached in 2015. However, the implementation of the deal has been impeded by MPs in both Tanzania and Uganda because of concerns relating to EU exports harming domestic industries. Lawmakers from both the ruling Chama Cha Mapinduzi (CCM) and opposition parties have raised concerns that the free trade deal will open...

Customs experts from revenue administrations across Africa are meeting in Harare to discuss modalities of implementing the One Stop Border Post concept on the continent so as to enhance Customs clearances and trade facilitation. The meeting, which runs from 14 to 16 November, is a precursor to the 8th Ordinary Meeting of the African Union Sub-Committee of Directors General of Customs which will run from 17 to 18 November under the theme, “From Barriers to Bridges – Implementing One Stop Border Posts for Improved Trade Facilitation”. Almost all African countries are represented at this year’s event, which will see Zimbabwe assuming the Chairmanship of the African Union Sub-Committee of Directors General of Customs. Speaking while officially opening the event at a local hotel, the Zimbabwe Revenue Authority (ZIMRA) Acting Commissioner General, Mr Happias Kuzvinzwa, applauded the One Stop Border Post concept as a sure way to improve on trade facilitation within the African continent. “One of the many ways to achieve the cognitive level of cooperation to improve on trade facilitation is the implementation of the One Stop Border Posts, which has the potential to improve the smooth flow of traffic at crossing points, as well as cutting down on the costs associated with the moving of goods across the borders,” said Mr Kuzvinzwa. He applauded the critical role being played by the Customs Technical Working Groups saying, this will help address issues in the Trade Facilitation Cluster of the Action Plan on Boosting Intra-African Trade. The Action Plan on...

Eliminating non-tariff barriers, upgrading customs systems and reforms, improved testing by the Uganda National Bureau of Standards have reduced the cost and time of doing business in Uganda Cars parked at the Malaba boder post. The cost of testing products reduced from $350 to $100 (Shs1.2 million to Shs350, 000). FILE PHOTO   Eliminating non-tariff barriers, upgrading customs systems and reforms, improved testing by the Uganda National Bureau of Standards have reduced the cost and time of doing business in Uganda. A new report by consulting firm Market Share shows that operations and interventions of Trade Mark East Africa (TMA) in Uganda have so far contributed to a 5.7 per cent reduction in transit time of goods between Kampala and Mombasa. The independent evaluators said TMA Uganda programmes have reduced trade costs and also induced $97m (Shs339 billion) new trade between 2014/2016. Mr Frank Matsaert, chief executive officer, TMA, said: “The evaluation findings have demonstrated how easy it is to do business in the country and is indeed a great step towards improving lives and businesses through trade.” Mr Moses Sabiiti, TMA Uganda country director, called on other like-minded partners to join forces to improve regional integration which will eventually unlock investment opportunities and create jobs. Report findings According to the report, the interventions at the Uganda Bureau of Standards have led to a reduction of the average time it takes to test selected products from 19 days to eight days. Following TMA’s intervention programmes, the cost of testing products...

HELSINKI, Finland, November 14, 2016-Minister of Foreign Trade and Development Kai Mykkänen will visit Tanzania and Kenya on 14–19 November 2016. The two countries are Finland’s long-term partners in development cooperation but now they are hoping for more investments and trade with Finland. The Minister will be accompanied by a delegation of 24 Finnish companies and organisations. “Trade will not replace development aid but without a strong input from the private sector there is a risk that the UN global sustainable development goals will not be reached. Finland will devote particular attention to reinforcing the private sector in the partner countries because that will create new jobs, tax revenue and sustainable solutions to energy, water and other basic necessities,” Mykkänen says. The Finnish delegation will have the opportunity to showcase their solutions to ministers and state institutions in the two host countries. In Tanzania Mykkänen will also attend a forestry investment conference and inaugurate a central control room for electricity supply built in Finnish-Tanzanian cooperation. The Minister will also open a geospatial business event organised by the universities of Turku and Dar es Salaam. In Kenya Mykkänen will attend three events dealing with clean energy, water as well as construction and architecture. In both countries the Minister will also visit Finland’s development cooperation projects. “Tanzania and Kenya are among the biggest economies in East Africa with an annual growth rate of 4–7%. Kenya has succeeded in becoming a lower middle income economy, while Tanzania still has the lowest income level....

By Rhiannon Snide and James Karuhanga The Ministry of Trade, Industry and East African Community Affairs is looking to more youth involvement in regional integration agenda, a top official said yesterday, at the launch of the latest edition of EAC Week. François Kanimba, the Minister for Trade, Industry and East African Community Affairs, said this yesterday during a news conference to launch the seventh EAC Week. The campaign will run under the theme: "Regional Integration: A Necessity for Development." "There was a general agreement at EAC-level that the focus should be on how regional integration is a key driver for economic development. This is the key message wherever we are going to go, particularly when we talk to the youth," Kanimba told journalists in Kigali. "This message will be emphasised as a mobilisation tool for the youth to maximise their potential to contribute to the regional integration process. Youth can contribute in different ways." Held annually in all EAC Partner States during the month of November, the EAC Week aims to increase awareness among citizens on the EAC integration agenda. The three-fold objective of this EAC Awareness Week is: updating Rwandans on key achievements under EAC integration, promoting awareness on key ongoing projects and programmes, and addressing the public's concerns and questions on the bloc's integration agenda. The minister added: "When you look at the skill development programmes we are implementing, particularly in Rwanda, skills are a fundamental ingredient to realise benefits of regional integration process. Skilled people can move...

South Sudanese ambassador and Foreign Affairs undersecretary Joseph Ayok Anei. JOSEPH ODUHA | NATION MEDIA GROUP  South Sudan and Uganda have signed a One-Stop Border Posts agreement to enhance trade through the efficient movement of goods, persons and services within the two partner states. South Sudan’s ambassador and Foreign Affairs undersecretary Joseph Ayok Anei, told reporters in Juba on Monday that the deal was vital, especially for South Sudan whose economy was handicapped by political instability. High taxations The agreement was inked on November 8 in Kampala by the Foreign Affairs secretaries from both sides. Mr Anei said the deal would also do away with non-tariff barriers and curb the illegal and high taxations imposed on traders from both countries. Although politically instable, South Sudan has curtailed the flow of commodities from Uganda and Mr Anei was optimistic that efforts by the Juba administration to restore peace would open doors for foreign investment and encourage the free trade between the two countries. Young nation South Sudan was dependent on goods and services from the East African countries, especially Uganda and Kenya. The young nation has also signed a similar trade agreement with Sudan, but had not enforced it due to allegations of rebels support from both sides. Source: Africa Review

  BRUSSELS, BELGIUM - Liberat Mfumukeko, the East African Community (EAC) Secretary General Ambassador was in Brussels last week to attend a High Level Committee of the European Development Fund (EDF). Created in 1957 by the Treaty of Rome and launched in 1959, the European Development Fund (EDF) is the European Union’s main instrument for providing development aid to African, Caribbean and Pacific (ACP) countries and to overseas countries and territories. The EDF funds cooperation activities in the fields of economic development, social and human development as well as regional cooperation and integration. The EDF meeting in Brussels brought together the Secretary’s General of the Common Market for Eastern and Southern Africa (COMESA), Inter-Governmental Authority on Development (IGAD), EAC , Southern African Development Community (SADC) and the Indian Ocean Commission(IOC), and EU representatives from Brussels. Amb. Mfumukeko asked the EU to consider priorities such as enhancing food security, income generation for employment to improve livelihoods. The Secretary General was accompanied at the meeting by Jessica Eriyo , the EAC Deputy Secretary General in charge of Finance and Administration who also led the EAC delegation during Technical meetings. The purpose of the high level meeting was to discuss the implementation of the EDF 11 under which EAC was allocated 85 million Euros for a period of 5 years. The resources were distributed as follows: Peace and Security (15million Euros), regional integration (45 million Euros), natural resources management (20 million  Euros), and institutional strengthening (5 million Euros). The 11th EDF was created...